FSCS funding: Is there a fairer way?

FSCS FUNDING

Nicola Brittain
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The FSCS's latest £60m bill to intermediaries to cover the failures of Arch Cru and Keydata sparked fresh calls for a review of how it is funded. But does another, fairer, way exist?

It has only been five years since the Financial Services Authority (FSA) last consulted on the funding of the Financial Services Compensation Scheme (FSCS) but, for many advisers, the wait has been long enough. The regulator is expected to announce a fresh consultation, which has already been delayed due to European policy developments, in the next few months, but it has not come soon enough to prevent advisers from footing numerous compensation bills they feel they should not have had to pay. A key issue has emerged around the FSCS’s existing categorisation of regulated businesses in...

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